What are tax preparation options? There are multiple tax preparation options you can choose from.…
To file as a head of household, you have to meet a few guidelines set by the IRS. To qualify, you have to be:
Married people do not qualify under this filing status. If you are legally divorced, then you and your ex-spouse should be living apart for more than six months. However, if your separation is temporary, such as military deployment, the IRS will consider you married.
Before listing your relative as a dependent, keep in mind that they have to meet certain qualifications. These relatives qualify if you’re supporting at least half of their financial needs and if they’re living in the same house as you for six months:
If you qualify under the IRS head of household filing status, then there are some financial benefits for you to maximize. These include a lower tax rate and a higher standard deduction. In fact, the standard of deduction for a single filer is around $5,800. Meanwhile, if you’re filing as head of household, your standard of deduction is at $8,500.
While these offer great financial benefits, you should be very careful when declaring your filing status. Do not attempt to stretch the truth no matter how much you want these savings. You can’t fool the IRS, and it would be very troublesome for you if they caught you lying on your tax return.
While filing as a head of household does offer some benefits, keep in mind that there are other filing statuses available. The best thing to do is to review your tax return and check which status you qualify for. Putting the financial benefits aside, incorrectly filing your tax return can be very problematic. That’s why, before deciding to file as head of household, you should make sure to double check that you really do qualify for it.
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